Sector Report: Rising Health Care Costs

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It will come as no surprise that cost continues to be the driving issue for employer-sponsored health insurance programs. Even though premiums only rose a seemingly modest 5 percent in 2016, that rate outstrips inflation and wage increases and is piled onto the previous years of constant increases, which continue to threaten the affordability of entire health care systems.

“When costs go up you only have a handful of options: get workers to pay more, change your network or reduce the scope of benefits,” said Matthew Rae, senior health policy analyst at the Henry J. Kaiser Family Foundation in Washington,

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